GBP/USD on dips is a buy - Rabobank

FXStreet (Guatemala) - Jane Foley, Senior Currency Strategist at Rabobank explained that while sterling is likely to see some setbacks along the way, we maintain a preference to buy the pound on dips.

“Cable is likely to remain well supported until Yellen drops her dovish tone and the USD embarks on a broad based recovery”.

“Last night ECB President Draghi reiterated the threat that further policy easing is a possibility for the Eurozone in the wake of weak economic data and the continued disinflationary threat”.

“Irrespective of exactly when the BoE choose to hike rates, it will certainly be ahead of the ECB”.

“We forecast EUR/GBP at 0.77 on a 12 mth view”.